BENGALURU: Paytm is expected to launch a chat messenger in its app to allow its user base of over 230 million to communicate more seamlessly within its network, according to sources familiar with the development. The company will convert its payment users to messaging and help businesses connect with consumers.

The feature is expected to be launched later this month, said one of the sources briefed on the matter. A Paytm spokesperson declined to comment when contacted ET.

Paytm’s move seems to be in the reverse direction compared to others such as Hike Messenger, which recently launched payments through wallet and unified payment interface (UPI), and WhatsApp, which is also expected to embed payments in the country.

Interestingly, WhatsApp's business head Neeraj Arora also sits on the board of Paytm.

The move is also likely inspired by WeChat, the Chinese social media and chat app developed by Tencent, which is fighting Paytm –backer Alibaba in China. WeChat, however, also began as a popular chat app before introducing payments, taking on Alibaba's Alipay.

India’s hyper-growth technology firms like Paytm are reluctant to let western companies win the market. The success of such platforms has been established in Asia, WeChat and Alipay being shining examples. Platforms developed in the western world, like PayPal, have struggled to earn market share too.

Paytm is looking to create a one-stop place for its users, offering not just payments but also an ecommerce platform, investment options in digital gold as well as booking services. The company also recently launched its payment bank. Other internet companies such as Flipkart are also adopting a similar approach. ET had reported in June that Flipkart was also looking at a WeChat model to create an ‘everything app’ for services such as ordering food, hailing a cab, planning a vacation, or buying daily essentials.

However, Flipkart had failed at its attempt at an in-app chat service called Ping, which the company shut last year barely ten months after launching it.

Paytm’s advantage in getting traction on such services is also that it is among the few internet companies with the highest customer base in the country. WhatsApp has over 200 million monthly active users in India. Hike claims to have over 100 million users. Flipkart has over 100 million users,

Paytm raised $1.4 billion from Softbank Corp at a valuation of $7 billion in May this year, making the company one of the most valued unicorns in the country after Flipkart. It was also was the biggest round of funding by a single investor in the Indian startup space.